B C D E F

2 ESOP Adjustments
3 Stock price 100 Equity val. 1750
4 Annual vol. 0.2 N 10
5 rF 0.1 Per share =E3/E4
6 Tax rate 0.25
7 Vesting ratio 0.8
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9 Esop Plan E-2017 E-2016 E-2015
10 No. granted 400 250 180
11 No. of options outstanding 400 250 150
12 Ex. Price 82 70 58
13 Maturity 5 4 3
14 FV at grant / option 35 31 25
15 FV now at stock price = 100 51 53 57
16 Total fair value =SUMPRODUCT(C11:E11,C15:E15)/1000 million
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18 Adjustments for the ESOP liability
19 Vesting adjusted N =C11*Vesting_ratio =D11*Vesting_ratio =E11*Vesting_ratio
20 Option value =H9 =I9 =J9
21 Total option value =SUMPRODUCT(C19:E19,C20:E20)/1000
22 Equity net of options =E3-C21
23 Value per share =C22/E4
 G H I J
2 Black-Scholes Option value of ESOPs
3 Stock price 175 175 175
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5 d1 =(LN(H3/C12)+(rF+Annual_vol.^2/2)*C13)/(Annual_vol.*SQRT(C13)) =(LN(I3/D12)+(rF+Annual_vol.^2/2)*D13)/(Annual_vol.*SQRT(D13)) =(LN(J3/E12)+(rF+Annual_vol.^2/2)*E13)/(Annual_vol.*SQRT(E13))
6 d2 =H5-Annual_vol.*SQRT(C13) =I5-Annual_vol.*SQRT(D13) =J5-Annual_vol.*SQRT(E13)
7 N(d1) =NORMSDIST(H5) =NORMSDIST(I5) =NORMSDIST(J5)
8 N(d2) =NORMSDIST(H6) =NORMSDIST(I6) =NORMSDIST(J6)
9 Call value =H3*H7-C12*EXP(-rF*C13)*H8 =I3*I7-D12*EXP(-rF*D13)*I8 =J3*J7-E12*EXP(-rF*E13)*J8
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